Source: Williams/Zero Hedge

“Economist John Williams warns the Federal Reserve has painted itself into a very tight no-win corner. No matter what the Fed does with rates it’s going to be a disaster. Williams explains, ‘You had some very heavy selling towards the end of the year and when you saw the big declines in the stock market you also saw that accompanied by a falling dollar and rising gold prices.’….Williams says the U.S. is already entering into a recession. Williams contends, ‘The first quarter of 2019 likely will be in contraction partially due to the government shutdown. That is slowing the economy on top of the interest rate hikes, but the cause of the recession here is not the government shutdown. It’s the Fed hiking rates.’….Williams also warns, ‘This is a very dangerous time both domestically and globally.’ Maybe this is why gold and silver prices keep steadily climbing higher. Williams says, ‘As things get worse here there is going to be a flight from the dollar into other currencies and in particular into gold. Gold is the long term store of wealth here…With debt collapsing and currencies collapsing you are going to end up with inflation.'”

 

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